The WSJ - In this negative environment, businesses are less willing to invest in the future, and individuals are less willing to spend what they can. Meanwhile, savers and retirees have seen much of their income decline because of low interest rates. The massive costs of all the stimulus have been wasted because of the heavy counterweight put on the economy by the administration's antibusiness and pro-redistribution policies.
True. But the press fails to point out that we have slow growth because our productivity shows almost no growth in the past 12 months. And long-term economic growth equals productivity growth plus population growth. Population growth is about 1%. So, we have an economy that will grow about 1.0-1.5% - to be optimistic.
Low producitvity has an impact on profits and the stock market.
But this is too boring, I know, to be printed. But the problems of every country can be boiled down to how efficient they are.
Is anyone proposing how to improve our productivity? No. People do not want to tackle boring subjects.
George Dagnino, PhD Editor,
The Peter Dag Portfolio.
Since 1977
2009 Market Timer of the Year by Timer Digest
Portfolio manager
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